S. Korea set to cut tariff quotas in H2

By Lee Joon-seung
SEOUL, June 23 (Yonhap) -- South Korea will reduce the number of products
benefiting from lower import tariffs in the second half to reflect an overall
decline in import prices, the government said Tuesday.

The number of products and materials subject to the tariff quota system will be
cut from 75 in the first half to 48 from July through December, the Ministry of
Strategy and Finance said.
A tariff quota is a quantitative threshold on imports above which a higher tariff
is applied. The lower tariff rate applies to imports within the quota, which
allows policymakers to adjust duties on specified merchandise to help control
inflationary pressure caused by surging prices.
"A total of 32 will be taken off the tariff quota list with five being added,
which includes such items as graphite, carbon paste and photomasks," a ministry
official said. Prices for the five new products have shot up in recent months.
The adjustment comes as import prices rose by an yearly average of around 10
percent in the January-April period, compared with a 50-percent jump tallied in
the middle of last year, he said.
The surge prompted the government to expand tariff rate quotas to prevent import
prices from fueling inflation here.
yonngong@yna.co.kr
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